Business
Great Basin Gold announces closing of C$126.5 million bought deal public offering of convertible debentures
Great Basin Gold announces closing of C$126.5 million bought deal public offering of convertible ...
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[{"type":"text","content":"\n\n\n\nNov. 19, 2009 (Canada NewsWire Group) -- VANCOUVER, Nov. 19 /CNW/ -- Great Basin Gold Ltd. (\"Great Basin Gold\" or the \"Company\"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces that it has closed its previously announced bought deal offering of senior unsecured convertible debentures (the \"Debentures\") with a syndicate of underwriters led by RBC Capital Markets and including, BMO Capital Markets, Raymond James Ltd. and Thomas Weisel Partners Canada Inc (the \"Offering\"). The underwriters have exercised their over-allotment option resulting in aggregate gross proceeds of C$126.5 million.Ferdi Dippenaar, President and CEO, commented: \"We are pleased to have completed a very successful transaction that provides Great Basin Gold with the capital it requires to fully develop the Burnstone project.\" Net proceeds from the Offering will be used for repayment of amounts drawn down on the Company's project finance facility, development of the Company's Burnstone project (replacing the proposed Burnstone project finance facility) and general corporate purposes.The Debentures are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by each subsidiary through which the Company holds title to the Burnstone project. The Debentures will rank pari passu with all existing and future senior unsecured indebtedness of Great Basin Gold, except as it relates to the subsidiary guarantees above. The Debentures will be effectively subordinated to all existing and any future secured debt of the Company to the extent of the assets securing such debt.The Debentures will mature on November 30, 2014 and will accrue interest at the rate of 8.0% per annum payable on a semi-annual basis. At the holder's option, the Debentures may be converted into common shares of Great Basin Gold at any time up to the maturity date. The conversion price will be C$2.15 for each common share, subject to adjustment in certain circumstances.The Debentures will not be redeemable before November 30, 2012. From November 30, 2012 through to the maturity date, Great Basin Gold may, at its option, redeem the Debentures, in whole or in part, at par plus accrued and unpaid interest provided that the weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending five trading ...